Posts Tagged ‘cancellation of debt’

I have written on this topic before (here), but with tax time approaching and 2010 being a near record year for bankruptcy and foreclosure, it is time to re-visit the tax reporting and implications related to mortgage debt after bankruptcy.

Let’s set the stage: you (the debtor) received a bankruptcy discharge in 2010 and as part of that process surrendered your home (allowed it to foreclose or short sold). The mortgage lender, following IRS guidelines, may send your 2 forms related to that event. (more…)